HR management software is no longer reserved for large corporations. With Internet-enabled access to online HR management platforms, very small businesses and SMBs are increasingly capable of optimizing their processes in order to remain competitive. However, there is a wide variety of HR management systems, and the key is to know which one to select for your business, and why. 

What is a Human Resources Information System (HRIS)? 

Let’s start by defining what we mean by HRIS. As the name suggests, a Human Resources Information System is a technological solution which centralizes all employee data. The HRIS encompasses several tools, in the form of software or applications, used to manage the different HR processes. As a standalone system, the HRIS can manage the following functions: 

• Recruiting process 

• Employee records 

• Training  

• Semi-annual or annual reviews 

• Vacations 

• Group insurance and retirement 

• Etc. 

The HRIS can even be integrated with the employee payroll system, thus avoiding multiple entries, saving time and preventing errors.  

Two types of HRIS  

HR information systems come in two major types. They are described below, with their pros and cons. 

Internal or ERP software 

This is a traditional solution where the software is directly installed on the internal servers. Although it provides for easier maintenance of data security, this solution is falling out of favour as it has two major disadvantages:  

• Higher installation, management and updating costs; 

• Limited choice and customization of functionalities. 

SaaS software 

SaaS (Software as a Service) means that the organization leases an HRIS software from an editor in the form of a subscription, usually on a monthly basis. This increasingly popular solution does not require a complex and costly internal software installation and comes without any updating and maintenance requirements on your part. The editor handles these tasks and hosts the software on its servers. 

The SaaS software provides high flexibility and better cost control, in addition to faster implementation and greater flexibility in terms of functionality selection. 

On the other hand, although the company data are highly secured, they are stored on the provider’s servers.  

ATS, an example of SaaS software 

The ATS (Applicant Tracking System), a SaaS software focused on recruiting, is an excellent example of an efficient and comprehensive HRIS tool particularly appealing to SMBs. An ATS system is used to manage the entire recruiting process: search for applicants, creation of job descriptions, SMS or email distribution, application tracking, dissemination of job offers, automated preselection, and many other functions. 

You may come across the acronym SIGT. It means “Solution intégrée en gestion des talents” and is the French equivalent of ATS. 

Properly assess your situation 

Now that we have introduced you to all these acronyms, let’s get back to more practical considerations. Before comparing HR software offerings, you must understand the actual needs and circumstances of your organization. Here are a few questions you should ask yourself as you start considering your options:  

• Which functionalities do you absolutely need? All HR software feature similar modules, but some providers offer more innovative functionalities, such as a workflow management system (when a task triggers another one automatically), an alert system, or data cross-referencing for generating more significant reports. 

• Who will be using the tool? The HR department? Managers? Employees? You will certainly need a tool that allows you to assign access categories. You will also need to determine which access you want to grant to each category of users. This functionality is crucial, including for complying with Bill 25. 

• Must the software be connected to your payroll management system? Linking your HRIS to your payroll system helps prevent errors, reduces duplication, and saves time by eliminating the need to manage two separate platforms. 

• What is your budget? The price is a key factor, just like the return on investment. Remember that an HRIS reduces HR administration costs by optimizing processes, that it holds a high strategic value as it allows you to retain employees and provides for easier management of performance, succession and career development, and that it immediately frees up time for the HR department, which can then give more thought to other much more strategic initiatives.  

• When are you planning to implement your HRIS? Online platforms are characterized by their speedy implementation! 

• How do you plan to use your HRIS as a communication tool? HR communication must be based on transparency and consistency. It fosters a sense of belonging to the organization, resulting in greater user loyalty and a more cohesive workforce. Externally, communication reinforces the employer brand to better attract new applicants. Your new tool must help you communicate more effectively. 

The importance of support  

Do not underestimate the importance of post-sale support when you compare different software offerings. The developers are often keen on making lofty promises! Make sure you will be able to discuss with a team member, preferably in your time zone. Give preference to a provider who understands your legal framework, your country or province, and your language. 

A local provider is often in the best position to answer questions as they arise and make any required changes without delay. 

Finally, do not make this decision without first consulting with the key people around you, namely your HR team, your managers and, of course, your employees!